Financial Crime World

Senegal Makes Strides in Financial Inclusion, But Challenges Remain

Senegal has made significant progress in financial inclusion over the past decade, with a substantial increase in access to formal financial services. According to the Global Findex 2021 report, the percentage of adults with access to such services has jumped from 15% in 2014 to 56%. The country’s adoption of its National Financial Inclusion Strategy (NFIS) in early 2022 is a major driver of this growth.

Challenges Remain

Despite this progress, approximately 44% of Senegalese adults still lack the financial services they need to achieve economic stability and protect themselves during difficult times. Women, small business owners, and smallholder farmers are particularly vulnerable to financial exclusion.

Visit by United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development

To address these challenges and identify opportunities for further growth, Queen Máxima, the United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA), visited Senegal from June 15-16. During her visit, she met with top government officials, international development partners, and private sector representatives.

Key Priorities

The UNSGSA emphasized four key priorities to achieve financial inclusion in Senegal:

  • Effectively Implement the NFIS: The UNSGSA urged President Sall to establish a responsible unit within the Ministry of Finance to coordinate the strategy’s implementation across ministries.
  • Robust Digital Public Goods Framework: She stressed the need for a robust digital public goods framework to facilitate participation in the digital economy, including drafting laws on electronic transactions, cybersecurity, personal data, and information disclosure.
  • Boosting Financial Services for MSME Owners: The UNSGSA emphasized the importance of boosting financial services for micro, small, and medium-sized enterprises (MSMEs) owners by strengthening market-based finance through programs such as FONGIP’s partial credit guarantee program. She also supported the establishment of the Oyass Fund, a hybrid SME acceleration fund providing long-term financing to small and medium-sized enterprises.
  • Regional Financial Reforms: Lastly, she urged President Sall to prioritize regional financial reforms, including completing the regional payments interoperability project, modernizing microfinance and banking sectors, and implementing a comprehensive regulatory approach to fintech.

Partnerships

The UNSGSA’s visit was supported by various partners, including:

  • Better than Cash Alliance
  • Bill & Melinda Gates Foundation
  • Consultative Group to Assist the Poor
  • World Bank